So a loaf of bread that cost 12,000 rials today costs 12,000 rials next week but the 12,000 rials you have as an Iranian citizen today is only worth 1.2 rials next week? Is that a good thing? Sounds like 1920's Germany to me.

So a loaf of bread that cost 12,000 rials today costs 12,000 rials next week but the 12,000 rials you have as an Iranian citizen today is only worth 1.2 rials next week? Is that a good thing? Sounds like 1920's Germany to me.

Ehhhh... I know you americans are tarded and all. But if you have a problem with ur money the thing would go in the opposite direction. 1 = 10 = 100 = 1000 etc. Not 1000 = 100. That menas they are makeing less money on the market and that gives the currancy strength.

Germany pre ww2 printed more and more money so they deutche mark became worthless. They did it because they had to pay france a whole LOT of it.

So todays class i will end with this. Less money = higher value. More money = less value. Did you get that??

We did this in Mexico, three zeros, it was just and administrative change because of the huge inflation. thus we now have a 12.80 parity with the USD but in reality is12800, it does nothing for the economy

this from the bank of mexico's site

Google translate:In the last quarter of the twentieth century the purchasing power of the coins was reduced due to inflation. This led to issue coins of high denominations, therefore, that the breach of the denomination of fifty dollars and at one point they reached a thousand mint coins and up to five thousand pesos. In this situation and in order to simplify the management of the amounts in national currency, the June 18, 1992 it was established that after 1993 a new unit would be used Monetary System of the United Mexican States, equivalent to 1000 pesos the previous unit. The new unit was named "New Pesos" and identified with the symbol "N $" or putting the word "New". That is, if a person had 5000 pesos before the change of unity, they amount to 5 New Pesos. To comply with the provision of the decree, the Bank of Mexico issued in 1992, a new series of coins in denominations of ten, five, two, and one dollar and fifty, twenty, ten and five cents.

So a loaf of bread that cost 12,000 rials today costs 12,000 rials next week but the 12,000 rials you have as an Iranian citizen today is only worth 1.2 rials next week? Is that a good thing? Sounds like 1920's Germany to me.

Quoting: Anonymous Coward 24009796

You're a retard, seriously.

Quoting: Anonymous Coward 8260452

No, he is not. We face this in Brazil in mid 80's, this made inflation skyrocket to unbelievable +80%/month. Can you picture going to the market today and buying something for about 10 dollars, then in the next week, the same thing costing about 15, and the next week about 20 and so on? This makes money worth nothing; What will happen? They will cut these 4 zeros, then prices(of everything) are going to skyrocket, what cost 1000 rial, will cost 1 rial, the next month, it will cost 100 rial again, which is the same as 100000 rial in few weeks, this is a disaster, the worst thing ever to happen...

There was a old news article from last year when Iran wanted to drop zeros and the reason given was to 'strengthen rial' and wrote how it will do that. I can not seem to find it through google search.

Anyway dropping zeros along with stopping import of foreign goods replacing it with domestic goods (has already started since last year. Many good are now prohibited from being imported)and other measures of dropping or phasing out dollar and euro as it was in the news recently, plus increasing the gold reserve (Iranian tv showed Iranian gold reserve increased by 100 tons this past year) and government subsidies thats going on now (every 2 to 3 months government deposits some money to Iranian low income families); All these and others can boost the economy and Irans currency in coming years.

The dropping of zeros is not just alone. There are other factors Iran has put in place by Ahmadinejad government.

So we have to wait and see what will happen. Iran contradicts every economic models in the world. What the world think it will happen will have opposite effect in Iran.

No the loaf will still be 12,000 rials and you will only have 1.2 to purchase it.

So a loaf of bread that cost 12,000 rials today costs 12,000 rials next week but the 12,000 rials you have as an Iranian citizen today is only worth 1.2 rials next week? Is that a good thing? Sounds like 1920's Germany to me.

What they're trying to do is make their currency seem more attractive vs foreign currencies to their own people by Xing out a few zero's...

Lot's of countries have tried this over the years...doesn't affect the value of the currency vs the amount of currency in circulation vs the price of commodities...so it's a shell game when you get right down to it.

Iran still has to import almost all of their food and (oddly enough) gasoline...do you think it's going to make any difference on the world market?!?!?

Meaning that world market controls the price of the commodities that this country must have...so Xing out a few zero's doesn't mean a thing in or out of Iran...

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